/*! elementor – v3.7.1 – 14-08-2022 */
.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}

Peter Schiff, an economist and gold bug, is a prolific speaker. He stated that the U.S. faces a greater financial crisis than the 2008 ‘Great Recession’ and that America’s economic downturn will be “a much larger crisis once the defaults begin.”

Peter Schiff explained how he would liquidate Euro Pacific Bank. David Lin, an anchor at Kitco News, sat down with the economist to discuss the American economy. Lin explained to Schiff that although inflation appears to be cooling, he thinks the trend won’t last. “Paradoxically, investors are buying gold and selling dollars on a lower than anticipated rise in July CPI because they believe the Fed will adopt an aggressive policy,” Schiff stated on Twitter. They are correct to sell dollars and purchase gold, but not for the right reasons. The inflation decline is temporary.”

Schiff explained why he believes America’s economic downturn is worse than 2008’s. Schiff claims that if the Federal Reserve continues to raise interest rates, then a financial crises is likely. The economist and gold bug stressed that 2008 was all about bad debt. It was people borrowing money that they couldn’t repay. Because the collateral was real estate, prices fell and it wasn’t worth it. We have more debt than we did in 2008… This will make it a bigger crisis once defaults begin.”

Schiff pointed out that America’s financial giants will not be rescued this time. The economist made the following comment:

If they fail, it will be worse than before. Except for inflation that is too high and the Fed fighting inflation. There is no TARP 2.0. All of these banks will have to be allowed failure.

Schiff claims that US Inflation is ‘Going To Be Here For Years and Years and Probably The Remainder Of This Decade’
Schiff’s comments are in response to the U.S. Bureau of Labor Statistics July Consumer Price Index report which showed a 8.5% increase year-over-year. The U.S. president Joe Biden was heavily criticized after he claimed that the American economy experienced zero percent inflation in July. Biden’s comments were made as the U.S. government attempted to define the technical meaning of “recession”. Schiff stated that the U.S. economy had experienced zero percent inflation in July. Schiff also added:

That’s not something I think is worth celebrating. It’s not like consumers got relief from rising prices. I have no doubt that we will see a higher rate than 9.1 percent. This inflation problem is far from over. It will continue to exist for many years and likely for the rest of this decade.

Schiff’s comment on the official CPI numbers follows a post that was published on schiffgold.com that day. It claims that the Bureau of Labor Statistics’ CPI calculation uses a government formula which understates actual price rises. Shadowstats.com’s alternative inflation charts also show that inflation is much higher then official reports.

The Truflation index also shows a higher inflation rate that the CPI. August 14 data showed a 9.41%. Lin spoke with Schiff about his expectations of a “massive economic crisis” and major problems with the U.S. Dollar. He expects silver and gold to rise if the dollar falls.

Schiff stated that the dollar has risen too much in the early stages this large inflation because investors believe the Fed can control inflation and bring it down to 2 percent. “When investors realize that inflation will continue to rise at a rate of 2 percent, the dollar will fall to the floor and gold and silver prices will soar.”

The post Peter Schiff Warns Again The US is Facing Something A lot Worse than 2008 first appeared on The Daily Encrypt.


Source link

About Author

Angie Byrd